Life and DI insurers have been using “nicotine” tests routinely for over a quarter century. Nevertheless, there continue to be frequent issues between producers, their clients and underwriters regarding testing outcomes. Researching a lecture on anti-selection and fraud, I took a peek at what is out there about these tests on producer blogs. What I found makes this a high priority article.
Underwriting does not have to be a barrier to profitable DI sales. You might say underwriting DI is more akin to applying for a bank loan because underwriters need to have a good feeling and a detailed description of the risks they are considering.
One of the biggest barriers often cited by financial professionals as a reason not to discuss disability income needs with clients is a concern about handling less-than-ideal underwriting outcomes and managing customer expectations. Perhaps by understanding the way underwriters approach each case, you can begin to gain a broader perspective of disability insurance and its underwriting process.
Ninety-seven years ago, Solomon Huebner, founder of The American College, taught us that there are two kinds of death: dead death and living death. Either kind of death destroys one’s ability to earn an income, and the financial consequences are the same—earned income ceases.
The events of 2008 that sent the global economy into a recession are still fresh in the minds of most businesses. The impact on many markets was obvious and damaging, but did the individual disability income (DI) industry suffer similar, economic-driven effects, particularly in the areas of morbidity, sales, underwriting and claims?
One-third (33 percent) of full-time workers surveyed lack long-term disability insurance; more than one-third (38 percent) of workers whose employers offered them the option to pay for group long-term disability insurance declined to buy it, leaving most uninsured.
LIMRA talks with Karen Terry, manager with LIMRA’s Product Research team and author of the recent report entitled, “Disability Insurance: Why Not?” Karen’s report focuses on why many consumers choose to buy – or not to buy - disability insurance, and also how, when, and where insurers can tap this still largely available market.
The latest batch of mortality data from the U.S. Centers for Disease Control and Prevention (CDC) hints that disability insurers may benefit somewhat less from improvements in health than they have in past years.
Guaranteed standard issue programs are becoming increasingly common in the individual disability income insurance market. According to Milliman’s 4th Annual Survey of the U.S. Individual Disability Income Insurance Market, 15% of individual disability insurance sales in 2009 were issued through a GSI program, up from 11% in 2004.
Kevin Quinn, CFP, RHU -- Disability Income Regional Vice President -- Principal Financial Group, dispels the myths around individual disability insurance underwriting. During this presentation, you'll learn the three main factors that impact the underwriting process and how to make the underwriting process work for you.
There is a growing trend among insurers to strengthen their in-house rehabilitation resources. Some have included among their claims management processes a requirement of claimants to undergo formal assessment to provide a functional job description. Article discusses how independently useful resources can be linked into one cohesive tool in determining the occupational limitations imposed by the condition and achieving return to work outcomes.
The 2010 Fact Book provides statistics and information on trends in the life insurance industry. Specific topics covered include assets, liabilities, income, expenditures, reinsurance, life insurance, and annuities.
Income Protection insurance is framed around the interplay between an insured’s illness, injury or diagnosis and the resultant inability to work, usually in their own or usual occupation. While much attention is typically given to the details of the sickness or injury, often less is known about the occupational aspects, the duration off work and how soon they will regain sufficient function to return to work.
Conducted on an annual basis, this benchmark industry survey covers Group LTD and STD inforce and sales premium results for 2010. Additional analysis and data on lapse rates, renewal activity, and ASO are included for those companies providing this information. Also, see 2010 US Individual Disability Market Survey Report.
National health care reform – combined with the empowerment of consumers and today’s accessible, secure technology – is changing how, when, and which benefits are sold. While this is true for all insurance markets, it is particularly true for such voluntary products as disability insurance (DI).
Much has been published in the mainstream media about the fact that disability income insurance claims have increased dramatically over the last several years, along with a disproportionate number of inappropriate claims denials. And the claims departments of many insurance companies have been told to “tighten-up.” Claims that would have once been routinely paid are now being denied due to industry trends, misunderstandings, lack of consumer knowledge, inability to contest, and lower returns on investment.
Every day Americans rely on their bones and muscles for strength, energy and mobility to help them get their job done. But research by The Hartford Financial Services Group, Inc. shows workers' framework is showing wear and tear.
In response to the lagging economy and lackluster life sales, many producers are renewing their focus on disability insurance (DI) as an income-bolstering strategy. It’s a good plan because now, more than ever before, American workers understand the serious need for income protection. If you haven’t dipped your toe in the DI pool, now’s the time! If you’re unsure how to get started, here’s a quick rundown on how to choose the perfect DI prospect.
Revenue from sales of new individual disability insurance fell 11% in 2009, to $339 million.
Researchers at JHA, the disability and group life reinsurance division of General Re Life Corp. Stamford, Conn., have reported those figures in a summary of results from a survey of 15 U.S. individual DI carriers.
The survey includes non-cancelable, guaranteed renewable and buy-sell transactions.
The popularity of the multiple CSI television shows and similar real-life (and death) cable programs have raised the public's awareness of forensic science. Insurance companies have also noticed and forensic claim investigations are becoming a normal part of the business, especially in the area of AD&D claims where it is important to determine if a death was accidental according to the terms of the policy.
Over the past two years, the Society of Actuaries’ Group Long Term Disability Experience Study Committee has gathered and analyzed group long term disability (GLTD) claim termination experience. The goal of the study is to create experience and valuation tables. The SOA Experience Study committee is comprised of SOA staff members, industry actuaries, and consultants. This article summarizes the past and current efforts and looks at next steps in the process.
When President Obama signed the two big health bills into law in March, he may have changed the U.S. disability insurance market in ways that providers, producers and customers cannot yet start to imagine.
Drew King, president of JHA, Portland, Maine, a disability reinsurance and consulting firm, talked about the potential impact of a health reform bill in March, before the bills had become law.
It seems that everyone is interested or at least has heard of Facebook, Twitter, My Space and other social networking sites. Undoubtedly, they are becoming more and more populari and bringing the world in which we live closer together. These new networks provide an overabundance of possibilities to keep "friends" (real or virtual) informed of our daily status, our activities and even our whereabouts should we chose to do so. This level of sharing has led to the creation of an electronic evidence trail of a user's thoughts and activities including photos as created and recorded by the user. Insurance companies have caught on and have started to "surf" the web to gather information with respect to claimants as part of the claims adjudication process. Telephone interviews and video surveillance do not seem to be enough anymore.
The secret to finding small business owners who are good disability insurance risks even in the middle of the Great Recession is that there is no secret, according to Ernest Smith in a breakout session on “financial underwriting” in turbulent times at a disability insurance conference organized by JHA, Portland, Maine, a unit of General Re Life Corp., Stamford, Conn.
It's a fact that disability income insurance (DI) claims have increased dramatically over the last several years, along with a disproportionate number of inappropriate denials. The claims departments of too many insurance companies have been told to "tighten-up." Claims that once would have been routinely paid are now being denied due to industry trends, contractual misunderstandings and consumer lack of knowledge and inability to contest.
During 2004--2007, an average of 15.7 million injuries were reported per year among employed persons. Half of these injuries resulted in time lost from work: 8% resulted in <1 day of time lost, 26% resulted in 1--5 days lost, and 16% resulted in ≥6 days lost. An average of 8.7 million injuries were reported per year among persons who attended school. Approximately one third of these injuries resulted in time lost from school: 9% resulted in <1 day of time lost, 22% resulted in 1--5 days lost, and 3% resulted in ≥6 days lost.
An insurance group should support a project to find out how terrorist attacks, economic disasters and natural disasters affect the likelihood that U.S. residents with disability insurance will suffer from disabling mental health problems.
CIGNA has released the findings of a new study that reveal an unmistakable trend: Integrating disability with health care programs has the potential to lower employers' total benefits costs and help disabled employees get back to work sooner and stay at work. As a result of the positive results found in the study, CIGNA is lowering its prices on disability benefits purchased with CIGNA medical coverage.
JHA, a division of Gen Re LifeHealth, is pleased to release the results of the 2009 U.S. Group Life and Group Disability Mid-Year Market Surveys. These leading industry benchmark surveys cover Group Term Life (Basic Term Life and Voluntary Term Life), Short Term Disability (STD) and Long Term Disability (LTD) sales and earned premium for the first half of the year.
Underwriters are seeing requests from clients to modify policy provisions in advance of anticipated layoffs. By Eric Swanson, Senior Marketing Underwriter, ING Reinsurance. Reprinted from May 2009 Best's Review.
To spot a trend in clothing, you check out the fashionista as they flicker about with flair and flash, but how do you discover trends in group disability? I’ve yet to meet a case managerista and I am not really sure I want to (I’ve heard there might be a few in Toronto), says ING Re's Mark Taylor.
Underwriters offer a critical perspective in the client service delivery process. And, while most underwriters identify themselves as being in the risk business, the great ones realize that they are also in the service business.
Think back – do you remember at least one quarter where your company’s financial results were well below plan as a result of far more than expected new LTD claims? Do you also remember when, a couple of quarters later, the financial results were excellent, as many of these new claims terminated when they had proved to be not very severe?